India Cements gets stay on cartelisation fine

CHENNAI: India Cements said on Monday that it has got a stay order, after it appealed the decision of the Competition Commission of India to impose a fine of Rs 187.48 crore on it for unfair pricing practices.

On August 31, the Competition Commission of India (CCI) imposed penalties of about Rs 6,700 crore on 10 cement companies, including India Cement and their umbrella association -- Cement Manufacturers Association (CMA) -- for cartelisation.

On November 21, the Competition Appellate Tribunal (COMPAT) granted a stay against the CCI's order. However, COMPAT imposed a condition that India Cements would have to deposit 10% (Rs 18.74 crore) of the penalty in the registry of the tribunal in the form of fixed deposit of six months duration within one month from the date of its order.

India Cements, in its filing with the BSE, said that it has made arrangements to deposit the amount. It also said, "There are chances of success in our appeal."

CCI's order came after a complaint was filed by the Builders Association of India against the cement companies and the CMA. The cement companies and the CMA's control on prices, capacity utilisation and production restricted output and supplies for the end consumer, noted the CCI in August and that "cartelization was detrimental to the interests of consumers and the economy."